Published: Monday, April 22, 2013 at 1:00 a.m.

Last Modified: Sunday, April 21, 2013 at 6:08 p.m.

SARASOTA - Tom Mannausa hopes to do something no builder has dared attempt in years.

With timing seemingly on his side, the developer is moving forward with the final planning stages for a new luxury high-rise condominium building in downtown Sarasota.

If Mannausa's plans come to fruition, it would mark the first tower of its kind to rise since the housing market's historic collapse nearly seven years ago.

The 18-story project, which Mannausa calls "The Jewel," would be built on the corner of Gulfstream Avenue and Main Street, with unit prices matching its opulence and bravado.

To dispel doubters, Mannausa says he has nearly $2 million worth of pre-construction deposits in hand from cash buyers. He is confident his project will succeed because of the pre-construction commitments and because of the type of product he is offering.

"Buyers want new, and we're seeing them come from places like New York City and Massachusetts," Mannausa said from a desk in the Jewel sales office. "Not one is taking out a mortgage."

At a time when sales of dwellings priced above $1 million are changing hands at the fastest pace since the bust, Mannausa has an opportunity that dozens of failed condo projects before him never did.

He is not going for cubic zirconia, either -- a move that both heightens the project's appeal and its risk factor.

The Jewel will feature 19 condo units ranging from 2,065 square feet to more than 4,300 square feet -- each lined with Italian porcelain finishes, views of Sarasota Bay and luxury touches like high-definition TVs built into bathroom mirrors.

The $48 million building's third floor is set aside for amenities such as a clubhouse, tennis court, nine-hole putting green and lap pool.

On a site where the shuttered Sports Page bar and restaurant and Living Walls furniture store now stands, the tower's ground floor will consist of six commercial condos. Each has already drawn strong interest from a bank, jeweler, a spa salon and an art gallery, Mannausa said.

Mannausa also claims to have cash deposits for all but two of the residential units, with only an 11th floor condo and a 14th floor unit -- priced, respectively, at $3.3 million and $3.5 million -- still unsold.

The Jewel's buyers -- who are predominantly affluent baby boomers, Mannausa says -- will be required to turn over 10 percent of their purchase price when their reservations become hard purchase agreements in June.

He expects construction to begin this fall, and to have condos ready for move-in by 2015.

Dark horse success

The Jewel's dark horse success has baffled many in the industry, though, in a market that, while on the mend, is still saturated with upscale condos for sale downtown.

Even so, more than a few observers believe the Jewel -- if successful -- could start a new wave of downtown building, or resurrect developments stalled during the Great Recession.

"The rich are buying real estate right now, and nothing new has come out of the ground in downtown for the last five or six years," said Jack McCabe, a Deerfield Beach real estate consultant. "Sarasota is definitely attracting affluent baby boomers."

Buyers in February snapped up 46 condos in the zip code composed of downtown Sarasota and portions of St. Armands and Lido keys. That represented a 59 percent jump from February 2012, Realtor records show.

Even so, Mannausa will be selling into a market with a plethora of upscale units available.

An estimated 240 condos have been for sale this year downtown and on Lido, 62 of them priced above $1 million, records show. But of those, only six have sold.

As a result, while luxury inventory downtown has slid 11 percent over the year, it would still take more than a year to sell every upscale condo based on current activity -- and that is if no new inventory is added.

By comparison, the inventory of condos for sale across greater Sarasota County stood at 5.6 months worth in February. The equilibrium between a buyer and seller's market traditionally is six months' worth, a baseline developers like to see before building speculation homes.

That is why many market analysts will be watching closely to see whether the Jewel shines or not. If the project shimmers, more condo developments will likely follow.

But some analysts caution against using the Jewel as a market barometer. With only 19 units, Mannausa will not have to sell dozens of them before breaking ground, McCabe notes.

"This single project should not be considered indicative of the market as a whole," he said.

No vertical building

McCabe is among those who believes much more existing inventory will need to be sold before cranes again dot the downtown Sarasota skyline.

And even though many luxury buyers may prefer new product, largely for updated amenities, they can still purchase existing condos downtown -- and give them complete make-overs -- often for less than buying new.

For that reason alone, many developers are scrapping condo tower plans in favor of other residences.

That is the case at a 2.2-acre tract at 1750 Ringling Blvd., planned for a 17-story condo building during the mid-2000s real estate boom.

Developer Leonard Garner bought the site in 2005 for $12.36 million, with grandiose plans dubbed "The Atrium," a collection of 88 condos and office space.

But after the market tumbled, Garner lost the site in a foreclosure to Fifth Third Bank in June 2008, court records show.

Jebco Ventures Inc. owns it now, having bought the site for $1.5 million. It has scratched plans to go vertical. Instead, the company is slated to build 39 townhomes, complete with garages, which it will market for around $300,000.

Jebco chief executive Jim Bridges expects to begin site work on the $20 million, multifamily project next month.

"We chose not to do that," Bridges said of constructing a high-rise. "We just believe the market for these townhomes is much stronger. The number of calls we have received with very little advertising is just phenomenal."

Other projects, such as condos planned for sites at the former Sarasota Quay, at the proposed Proscenium luxury tower and at Pineapple Square behind the Gator Club show few signs of rebounding anytime soon.

Still, downtown living continues to gain in popularity, especially among baby boomers and young professionals -- both market segments that are becoming larger components of Sarasota's buying demographic.

And if the trajectory of strong demand and slowly fading inventory continues, more projects like the Jewel are bound to eventually follow, said Linda A. Page, a broker associate with Michael Saunders & Co. who specializes in downtown condos.

"Downtown is very popular, and we have had no new construction in years," Page said. "It's been so long, and there have been a few false-starts, like Pineapple Square, so what you have is pent-up demand."

<p><em>SARASOTA</em> - Tom Mannausa hopes to do something no builder has dared attempt in years.</p><p>With timing seemingly on his side, the developer is moving forward with the final planning stages for a new luxury high-rise condominium building in downtown Sarasota.</p><p>If Mannausa's plans come to fruition, it would mark the first tower of its kind to rise since the housing market's historic collapse nearly seven years ago.</p><p>The 18-story project, which Mannausa calls "The Jewel," would be built on the corner of Gulfstream Avenue and Main Street, with unit prices matching its opulence and bravado.</p><p>To dispel doubters, Mannausa says he has nearly $2 million worth of pre-construction deposits in hand from cash buyers. He is confident his project will succeed because of the pre-construction commitments and because of the type of product he is offering.</p><p>"Buyers want new, and we're seeing them come from places like New York City and Massachusetts," Mannausa said from a desk in the Jewel sales office. "Not one is taking out a mortgage."</p><p>At a time when sales of dwellings priced above $1 million are changing hands at the fastest pace since the bust, Mannausa has an opportunity that dozens of failed condo projects before him never did.</p><p>He is not going for cubic zirconia, either -- a move that both heightens the project's appeal and its risk factor.</p><p>The Jewel will feature 19 condo units ranging from 2,065 square feet to more than 4,300 square feet -- each lined with Italian porcelain finishes, views of Sarasota Bay and luxury touches like high-definition TVs built into bathroom mirrors.</p><p>The $48 million building's third floor is set aside for amenities such as a clubhouse, tennis court, nine-hole putting green and lap pool.</p><p>On a site where the shuttered Sports Page bar and restaurant and Living Walls furniture store now stands, the tower's ground floor will consist of six commercial condos. Each has already drawn strong interest from a bank, jeweler, a spa salon and an art gallery, Mannausa said.</p><p>Mannausa also claims to have cash deposits for all but two of the residential units, with only an 11th floor condo and a 14th floor unit -- priced, respectively, at $3.3 million and $3.5 million -- still unsold.</p><p>The Jewel's buyers -- who are predominantly affluent baby boomers, Mannausa says -- will be required to turn over 10 percent of their purchase price when their reservations become hard purchase agreements in June.</p><p>He expects construction to begin this fall, and to have condos ready for move-in by 2015.</p><p><b>Dark horse success</p><p></b></p><p>The Jewel's dark horse success has baffled many in the industry, though, in a market that, while on the mend, is still saturated with upscale condos for sale downtown.</p><p>Even so, more than a few observers believe the Jewel -- if successful -- could start a new wave of downtown building, or resurrect developments stalled during the Great Recession.</p><p>"The rich are buying real estate right now, and nothing new has come out of the ground in downtown for the last five or six years," said Jack McCabe, a Deerfield Beach real estate consultant. "Sarasota is definitely attracting affluent baby boomers."</p><p>Buyers in February snapped up 46 condos in the zip code composed of downtown Sarasota and portions of St. Armands and Lido keys. That represented a 59 percent jump from February 2012, Realtor records show.</p><p>Even so, Mannausa will be selling into a market with a plethora of upscale units available.</p><p>An estimated 240 condos have been for sale this year downtown and on Lido, 62 of them priced above $1 million, records show. But of those, only six have sold.</p><p>As a result, while luxury inventory downtown has slid 11 percent over the year, it would still take more than a year to sell every upscale condo based on current activity -- and that is if no new inventory is added.</p><p>By comparison, the inventory of condos for sale across greater Sarasota County stood at 5.6 months worth in February. The equilibrium between a buyer and seller's market traditionally is six months' worth, a baseline developers like to see before building speculation homes.</p><p>That is why many market analysts will be watching closely to see whether the Jewel shines or not. If the project shimmers, more condo developments will likely follow.</p><p>But some analysts caution against using the Jewel as a market barometer. With only 19 units, Mannausa will not have to sell dozens of them before breaking ground, McCabe notes.</p><p>"This single project should not be considered indicative of the market as a whole," he said.</p><p><b>No vertical building</p><p></b></p><p>McCabe is among those who believes much more existing inventory will need to be sold before cranes again dot the downtown Sarasota skyline.</p><p>And even though many luxury buyers may prefer new product, largely for updated amenities, they can still purchase existing condos downtown -- and give them complete make-overs -- often for less than buying new.</p><p>For that reason alone, many developers are scrapping condo tower plans in favor of other residences.</p><p>That is the case at a 2.2-acre tract at 1750 Ringling Blvd., planned for a 17-story condo building during the mid-2000s real estate boom.</p><p>Developer Leonard Garner bought the site in 2005 for $12.36 million, with grandiose plans dubbed "The Atrium," a collection of 88 condos and office space.</p><p>But after the market tumbled, Garner lost the site in a foreclosure to Fifth Third Bank in June 2008, court records show.</p><p>Jebco Ventures Inc. owns it now, having bought the site for $1.5 million. It has scratched plans to go vertical. Instead, the company is slated to build 39 townhomes, complete with garages, which it will market for around $300,000.</p><p>Jebco chief executive Jim Bridges expects to begin site work on the $20 million, multifamily project next month.</p><p>"We chose not to do that," Bridges said of constructing a high-rise. "We just believe the market for these townhomes is much stronger. The number of calls we have received with very little advertising is just phenomenal."</p><p>Other projects, such as condos planned for sites at the former Sarasota Quay, at the proposed Proscenium luxury tower and at Pineapple Square behind the Gator Club show few signs of rebounding anytime soon.</p><p>Still, downtown living continues to gain in popularity, especially among baby boomers and young professionals -- both market segments that are becoming larger components of Sarasota's buying demographic.</p><p>And if the trajectory of strong demand and slowly fading inventory continues, more projects like the Jewel are bound to eventually follow, said Linda A. Page, a broker associate with Michael Saunders & Co. who specializes in downtown condos.</p><p>"Downtown is very popular, and we have had no new construction in years," Page said. "It's been so long, and there have been a few false-starts, like Pineapple Square, so what you have is pent-up demand."</p>